Full Coverage is one of the most misunderstood terms in the insurance industry. Many drivers, when investigating how to get auto insurance now pay later, assume that Full Coverage refers to having every possible outcome of the vehicle covered to the full value of the car. This is not true. The fact is, the term Full Coverage varies from state to state and its definition depends on the legal requirements for insurance coverage in that state. When an insurance policy satisfies all of these legally defined elements, the coverage is considered to be Full Coverage even if there are many circumstances under which no payment would be offered.
Full coverage typically includes both comprehensive and collision (also known as liability) coverage. Other elements such as theft, gap, or vandalism may be insured under the same policy or may not be, but if they are not legally defined this will have no bearing on whether the policy is considered Full Coverage or not. As a result of this confusion, the term Full Coverage is sometimes considered a misleading marketing term used by insurance companies to give drivers the implication that they have more insurance coverage than they actually do.
To determine whether an existing policy is considered Full Coverage, you can simply look at the declarations page of the policy itself. The nature of the coverage will be explicitly stated there. If you do not currently have Full Coverage and wish to have this defined for you before you seek auto insurance quotes for Full Coverage, you can simply contact your insurance company and ask them what is considered Full Coverage in your area. They will be happy to explain it to you.
Another important and potentially confusing aspect of the term Full Coverage is the fact that Full Coverage actually represents a minimum requirement as defined by the state, not complete coverage as the term might imply. If you have Full Coverage you may still wish to purchase additional coverage in order to protect yourself from theft, from vandalism, or to help pay a loan payment or lease agreement even if you vehicle’s book value is not as high as the amount you owe. All of these options are likely available to you and you can easily get auto insurance quotes on them even if you have what is considered Full Coverage in your area.
There are many terms in the insurance industry that are confusing to the uninitiated. Even if you think you understand what they mean it is a very good idea to contact your local agent and ask for explanations and more information, or if you are shopping around for insurance rates to take advantage of the representative working to give you auto insurance quotes and request clear explanations of the terms you encounter. Ultimately the goal should be to get auto insurance now pay later as you personally need, and not any more – unnecessary coverage is simply a waste of resources. Review your policy regularly to see where adjustments can be made.